While it is generally advised for Indian citizens to retain their PAN (Permanent Account Number) cards as valid identity proof, certain circumstances may necessitate surrendering the card. This process is crucial in situations such as administrative errors, the issuance of multiple cards, or the unfortunate event of an individual's demise. This comprehensive guide outlines the reasons for surrendering a PAN card and provides step-by-step instructions for both online and offline surrender processes.
Reasons for PAN card surrender
Here are a few reasons why you would want to surrender the PAN card.
- Duplicate PAN cards: Individuals issued with multiple PAN cards due to administrative errors or inadvertent application duplications must surrender the extra cards to comply with the law.
- Demise of the cardholder: In the event of an individual's death, the PAN card must be surrendered by the relatives or legal representatives along with the necessary documentation.
- Firm/ Partnership/ Company dissolution: When a firm, partnership, or company is dissolved, the PAN card issued in its name must be surrendered.
Online surrender process for duplicate PAN cards
- Visit the Income Tax Department website.
- Navigate to the 'Surrender duplicate PAN' option.
- Provide details of the duplicate PAN number(s) and the PAN that you wish to retain, along with personal information.
- Submit the form and follow the directed process.
Process for Firm/ Partnership/ Company dissolution
- Visit the Protean eGov Technologies Limited TIN website.
- Select the category and fill out form 49A online.
- Enter the PAN card number to be cancelled.
- Submit the form, print the acknowledgement, and send it with the necessary documents to the Protean eGov Technologies Limited office.
Consequences of holding multiple PAN cards
Individuals holding more than one PAN card may face penalties according to Section 139A of the Income Tax Act, 1961. As per Section 272B, a penalty of Rs. 10,000 can be imposed. To rectify this, individuals can deactivate the extra card through the Protean eGov Technologies Limited online portal or offline by submitting the PAN correction form at the closest facilitation centre.
Surrendering PAN card due to death
In case of the death of the PAN card holder, relatives must write a letter to the Income Tax Officer, stating the reason for surrender, and include a copy of the death certificate. This procedure applies to Indian residents, non-resident Indians (NRIs), and foreign nationals.
Surrendering a PAN card is a straightforward yet critical process that ensures adherence to legal and regulatory requirements. Whether surrendering duplicates, due to demise, or firm dissolution, individuals and entities can follow the specified online or offline procedures. Understanding the consequences of holding multiple PAN cards emphasises the importance of compliance with tax regulations. Stay informed, follow the guidelines, to easily surrender the PAN card when required.
